Aluminum wheel manufacturer, Superior Industries International Inc. , announced severe volume losses with critical North American original equipment manufacturer (OEM) customers starting in the second quarter of 2025. We now expect a distressed restructuring on its debt obligations to be likely. Therefore, we lowered our rating to ?CC? from ?B-? and revised our outlook to negative. The negative outlook reflects that we will lower our rating on Superior to ?SD? (selective default) or ?D? (default) upon completion of the distressed restructuring. The company announced the loss of purchase orders from major North American OEM customers representing 33% of its planned 2025 revenues. We believe Superior will engage in a debt restructuring to reduce outstanding debt and provide liquidity relief. The
